[WSBARP] Separate Property with Co-habitation and Expenses

[Andrew Hay]

Well just shooting from the hip on this I would say set a baseline at the point of marriage.  The baseline would establish the parties relative percentages of ownership of their collective assets.  For instance if the husband came in with twice as much property as the wife, that’s your baseline – two to one.  You want to create an ownership scheme that keeps the baseline percentages equal.  So the wife’s estate would not diminish while the husband’s grew over time.  If anything, you would want the disadvantaged party (in this case the wife) to have her estate improve in relation to the husband. You certainly wouldn't want to create a scheme where the disadvantaged party's position is weakened or made less secure.
After that the goal would be to create a situation where common good grows and is diminished proportionally, depending on family expenses and needs.

Andrew Hay
Hay & Swann PLLC
201 South 34th Street
Tacoma, WA  98418
Phone: (253) 272-2400
Fax:     (253) 267-8947
www.washingtonlaw.net<http://www.washingtonlaw.net/>


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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Jim Doran
Sent: Friday, February 08, 2019 8:31 AM
To: WSBA Real Property Listserv
Subject: [WSBARP] Separate Property with Co-habitation and Expenses

List members:

Mature (well, in their 60's) clients have figured out who owns what property in a Property Agreement.  However, they are asking me for "what is fair" in how they split up the costs of co-habitation.  I think this is probably a common scenario these days.  I have this question arise with clients now and then.  Can someone give me some guidance?  Is there a popular book on this topic?  A website?

Here are the basic two scenarios for the modern age:

Scenario #1 (John and Mary): John owns his home and has a mortgage on it with a $1,500 per month which includes taxes and insurance.  Mary is going to live with John in his home.  It is a very nice home.  Mary is going to sell her home and keep those funds separate.  The two of them will have all of the typical living expenses of food, utilities, minor maintenance, etc.  The two of them share the tasks of living together such as cooking and shopping and cleaning, laundry, etc.  Mary likes to cook for John so they are in agreement that her services have a value.  They will keep their own health insurance and vehicle insurance separate since they are not married.

QUESTION: What contribution should Mary make to the overall costs of living in John's home so that there is a sense of fairness so that resentments do not ensue?

Scenario #2 (Mike and Susan): It is the basic same co-habitation story with one change.  Mike owns his home outright.  He paid off the mortgage.  Mike still has taxes and insurance to pay.  Susan is going to live in Mike's home with Mike.  Susan is going to sell her home and keep those funds separate.  They share the living tasks.  The utilities, food and minor maintenance are pretty simple.  They can make an adjustment for Susan's services because she likes to provide the cooking.

Same QUESTION: What contribution should Mary make to the overall costs of living in John's home so that there is a sense of fairness so that resentments do not ensue?

This question keeps coming up as I do work with "mature clients" in their second or third serious relationship or marriage.  Surely there is some structural guidance out there somewhere.

Thank you.

James Doran





James R. Doran
Attorney at Law
100 E. Pine Street -  Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com<mailto:jim at doranlegal.com>
www.doranlegal.com<http://www.doranlegal.com>
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